Quiz 7 2011.pdf - MBA 200S Data and Decisions Fall 2011...

1 MBA 200S Data and Decisions, Fall 2011 Gregory La Blanc and Lucas Davis The University of California at Berkeley Haas School of Business Quiz #7 Last Name: ____________________________ First Name: ____________________________ Cohort: ____________________________ TIME ALLOWED: 20 minutes MATERIALS ALLOWED: You may use a calculator but you should display all your relevant calculations and/or reasoning for each problem. No books, laptops or wireless communications technology are allowed.

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2 Dunder Mifflin is a paper and office supply distributor. The new CEO, Robert California, has recently arrived at Dunder Mifflin, and he is trying to better understand the company’s business. He recognizes that the sales force is the core strength of the firm and asks Andy, a regional manager, to do some analysis on the sales force using regression models. Andy believes that the profit each sales agent brings mainly depends on the number of customers he/she has. So he collects data on a random sample of 40 sales agents and runs a simple regression model, whose response

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